Questions still swirl around Alan Grayson's hedge fund
Democratic U.S. Senate candidate Alan Grayson's controversial work as a hedge fund manager continues to cast a big shadow over his campaign. Here's what appeared this week in The American Prospect about the Grayson:
As much as I would like to see another progressive Democrat in the elite club of the upper chamber, Alan Grayson is not that guy. He’s a ticking time bomb and something of a fraud; a fire-breather whose greatest asset—his big mouth—is also his greatest liability. In the end, his candidacy represents a high-risk venture for the progressive movement, of the sort that only a hedge fund manager could love....But there are no excuses left for Alan Grayson, or for progressives who continue to support him. It’s time for him to leave the political stage, and leave his progressive guise in a cloakroom somewhere.
The New York Times took a hard look at Grayson's unusual, if not unprecedented, practice of managing a hedge fund for unidentified investors while also serving as a member of Congress. That report raised still more questions about Grayson and his hedge fund. For instance:
***Who are his investors and is Grayson willing to permission to release their names to show there is no potential conflict working for these investors while also working for his congressional constituents? Grayson won't reveal their names. His investors, said spokesman Ken Scudder, "have the right to an expectation of privacy."
***Why in November did Grayson tell The Hill through his spokesman that a "new investor who entered the fund following Grayson’s re-entry to Congress" later "cashed out" of the fund, but then tell the New York Times this month that no new investors joined the fund since Grayson returned to Congress in 2013?
"We’ve already explained the nature of the fund in all the months we’ve been talking about it. We’ve already explained about who the investors were and their relationship with the Congressman. The Congressman is too busy today to get you anything further right now," Scudder said when we asked.
More than two months after the Tampa Bay Times first reported that Grayson ran a hedge fund based in the offshore tax haven of the Cayman Islands, Grayson said all his investors were "friends and family." Now, Scudder says, it is only "family."
***Why were marketing materials produced for the fund, including materal identifying the fund manager as a congressman? Wouldn't his friends and family know he was a congressman?